The Automobile Association (AA) has said that global declines in the price of oil since the second week of 2019 will likely give South African motorists a breather for February.
The AA was commenting on unaudited month-end fuel price data released by the Central Energy Fund.
According to its projections,
- 95 Octane petrol will drop by around 13 cents a litre;
- 93 Octane petrol will drop by 4 cents a litre;
- Both grades of diesel will drop by 4 cents a litre; and
- illuminating paraffin will decrease by 3 cents.
"Rising tensions between the USA and Iran in the opening days of 2020 sparked a sharp increase in international oil prices, but the commodity has rebounded quickly. In fact, the oil price has returned to a level we might have expected had the US-Iran flare-up not taken place at all," the AA said.
"We're pleased fuel prices have managed to tread water at the start of a year, a year which is likely to again be extremely economically challenging," the AA said.